Operating Models –
Driving Successful Transformation

Companies must transform their operating models to manage the supply chain networks of the future. Leading brands and supply chain providers have optimized linear, rigid and lean operating models with top-down, siloed decision making. However, companies must now compete in a digitally connected, omnichannel landscape where speed and flexibility are critical to success. For many companies, what used to be their competitive advantage is now one of their biggest constraints.

An operating model is the link between corporate strategy and execution. All too often, companies declare bold visions and hire functional leaders, but fail to differentiate their capabilities, strategically organize resources or establish an operational blueprint. Well defined operating models ensure value delivery, plus the ability to effectively counter disruptive competitors, capitalize on growth opportunities and mitigate risk.

Companies must transform their operating models based on the unique realities of their industry, strategy and extended supply network. To do this right, they must keep 7 key areas and questions in mind:

  1. People – What experience and skills do you need across roles and levels to thrive in a digital world? How do you ensure diversity, flexibility, growth and cultural fit?
  2. Process – How do you best realign processes to support core strategic priorities? How do you optimize information flows in a fast-moving, agile organization?
  3. Technology – When do you use cloud-based apps vs. proprietary, purpose-built apps for competitive advantage? How do you balance immediate ROI vs. long-term advantage?
  4. Data – How do you standardize and automate collection of critical data across your network? What tools and dashboards will make that data accessible and actionable?
  5. Governance – How do you ensure decisions are aligned with your strategy? How do you redefine decision making rights and processes to be data and analytics driven?
  6. Culture – What are the principles and values that guide your thoughts and behaviors? How do you inspire and motivate people to stay focused, committed and accountable?
  7. Structure – How do you redesign roles and responsibilities to deploy integrated squads focused on customer journeys? How do you manage across functions and locations?

Successful transformation of supply chain operating models requires an integrated approach. As companies seek to transform their operating model, it’s critical that they think holistically. Fixing one area without addressing the others rarely leads to differentiated or lasting change. Process improvements may realize incremental cost and time savings, but without an associated shift in technology tools and systems that makes data more actionable, or new team and decision making structures, the overall transformation will fail.

View our services to see how GoodOps can help you strategically transform your operating model and lead in a digitally connected, fast moving and complex world. Or send us an email at info@goodops.co to get started today.

Divya Demato + Richard Demato
Founders, GoodOps